Applied Materials warns of orders 35% off previous quarter

SANTA CLARA, Calif. -- Applied Materials Inc. said today (January 31, 2003) that it expects its orders for the first fiscal quarter ending January 26, 2003 to be about 35% below the fourth quarter level and below a previously provided guidance.

The company had said it expected sales to be 20% below the fourth quarter level. New orders in the fourth quarter were $1.56 billion.

"Due to ongoing economic weakness and geopolitical uncertainties, customers deferred capital expenditures, causing a larger order shortfall than expected," said James Morgan, chairman and chief executive officer of Applied Materials, in a statement.

The company also announced that the pre-tax restructuring charge is now expected to be approximately $100 million.